Thursday, January 12, 2012

In the News & Around the Blogosphere

AP, NYTimes, Michigan: Ex-Congressman Gets One-Year Sentence (w/ a hat tip to Ivan Dominguez)

Susan Pulliam, WSJ, Galleon Prosecutor to Leave for Dechert

Peter Lattman, NYTimes, Ex-Fund Manager Gets Prison Term in Insider Trading Case

FCPA Professor, The Year That Was

Danielle Ulman, The Daily Record, Curlett, Levin join forces to form firm specializing in criminal defense (login required)

Gina Passarella, The Legal Intelligencer, Computergate Defendant's Legal Mal Suit Targets K&L Gates, Buchanan Firm (login required) (hat tip to Peter Goldberger)

(esp)

January 12, 2012 in News | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 11, 2012

In the News & Around the Blogosphere

Lynnley Browning, Reuters, US moves toward legal action against Swiss bank-sources

Sue Reisinger, Corporate Counsel, law.com, DOJ and SEC Use of Deferred and Non-prosecution Agreements in 2011

Robbie Brown, NYTimes, North Carolina: Edwards Legal Team Asks for Delay (hat tip to Ivan Dominguez)

DOJ Press Release, GE Funding Capital Market Services Inc. Admits to Anticompetitive Conduct by Former Traders in the Municipal Bond Investments Market and Agrees to Pay $70 Million to Federal and State Agencies;

Matthew Huisman, BLT Blog, SEC, Other Agencies Settle with GE Funding in Securities Fraud Case

DOJ Press Release, Former Grant Administrator and Legal Assistant of American Samoa Non-Profit Legal Aid Corporation Plead Guilty to Stealing More Than $150,000 in Federal Grant Funds

Karen Sloan, NLJ, law.com, Study: Jurors can't distinguish between knowing and reckless conduct

Bob Van Voris, Bloomberg News, Ex-trader David Slaine Helped Lead to Rajaratnam, U.S. Says

DOJ Press Release, CDR FINANCIAL PRODUCTS EXECUTIVE AND FORMER EXECUTIVE PLEAD GUILTY IN NEW YORK TO BID-RIGGING AND FRAUD CONSPIRACIES RELATED TO MUNICIPAL BOND INVESTMENTS 

DOJ Press Release, Los Angeles Church Pastor Sentenced to 180 Months in Prison for $14.2 Million Medicare Fraud Scheme - One of the Longest Health Care Fraud Sentences Imposed in the Central District of California 

Mike Scarcella, BLT Blog, D.C. Judge Weighs Mistrial Request In FCPA Case

Sue Reisinger, Corporate Counsel, Ex-GC of WellCare Health Plans Charged with Fraud

Walter Pavlo, Forbes, Will Rajaratnam Testify in Rajat Gupta Case?

Ed Beeson, Star-Ledger, Ex-Chicago Bears wide receiver Willie Gault latest pro athlete accused of white-collar crime

(AP) Washington Post, Ex-Israeli leader Olmert indicted on new corruption charges in Jerusalem real estate scandal

Editorial, Detroit Free Press, Editorial: Lopsided justice in grand jury system (w/ a hat tip to Ivan Dominguez)

(esp)

January 11, 2012 in News | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 10, 2012

False Claims Act - Qui Tam Law

Check out A. Brian Albritton's, False Claims Act & Qui Tam Law Blog - Recent news and cases concerning the False Claims Act, Qui Tams, whistleblowers, and other related collateral proceedings.

(esp)

January 10, 2012 in About This Blog, News | Permalink | Comments (0) | TrackBack (0)

Monday, January 9, 2012

"Highly Complex Fraud Case" Has Judgment Vacated and Remanded

The Second Circuit Court of Appeals vacated the judgment and remanded a white collar case  (United States v. Collins) saying that "the trial court committed prejudicial error when it failed to disclose the contents of a jury note and engaged in an ex parte colloquy with a juror accused of attempting to barter his vote."  The three "c"s - judges with last names starting with the letter "C"- Calabresi, Chin and Carney - issued this opinion in a 14-count case involving conspiracy, securities fraud, wire fraud, and bank fraud.  The foreman had sent a note to the court "asserting that one juror had attempted to barter his vote and was refusing to deliberate." "The court did not share the contents of the note with the parties or seek counsel's input before it conducted an ex parte interview with the accused juror."  The Second Circuit held that the defendant was deprived "of his right to be present at every stage of the trial" and that this "deprivation was not harmless."

See also Chicago Tribune (AP), Winnetka lawyer wins new trial on NYC appeal

Mark Hamblett, NYLJ, Circuit Upsets Fraud Conviction of Ex-Mayer Brown Partner

(esp)(w/ a hat tip to Linda Friedman Ramirez)

January 9, 2012 in Judicial Opinions, Prosecutions | Permalink | Comments (0) | TrackBack (0)

SEC Ends Orwellian Policy

Stop the presses. Hold the back page. Saturday's New York Times reports here on the SEC's decision to end its "does not admit or deny" policy, but only for SEC civil defendants who are also pleading guilty to criminal charges or admitting wrongdoing as part of a deferred criminal adjudication. In other words, the policy is similar in its immediate effect to Lincoln's Emancipation Proclamation, which (for the most part) merely freed slaves in rebel held territory. Why be so boastful about ending a policy that never made much sense in the first place, because it allowed individuals and entities to neither admit or deny civil allegations when they had already pled guilty to similar, and more serious, criminal charges? To hear the SEC tell it, the decision to abandon the old policy is NOT in response to Judge Rakoff's order rejecting the proposed Citigroup consent decree, as the new policy would not apply in the Citigroup case and the decision has been under consideration since Spring 2011. The decision itself may not be in response to Judge Rakoff, but it is hard to believe that its timing is not. Although Judge Rakoff should be commended for his thoughtful opinion, I am not without sympathy for Khuzami. He and the SEC are the only actors at the governmental level who appear to be systematically investigating and bringing actions against the elite financial entities largely responsible for our economic meltdown. (DOJ is on holiday.) Still, the SEC spends too much time on its public relations.

(wisenberg)

January 9, 2012 in SEC, Securities, Settlement | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 4, 2012

Yesterday In Fraud

A 5th Circuit panel (including Chief Judge Edith Jones!) unanimously reversed two Section 1956 money laundering convictions based on insufficient evidence. The case is U.S. v. Harris (5th Cir. 2012) (Section 1956 money laundering evidence insufficient). The reasoning? The government conflated the underlying crime with the separate crime of money laundering. The proven transactions were not proceeds of specified unlawful activity. The evidence only showed "payment of the purchase price for drugs. Money does not become proceeds of illegal activity until the unlawful activity is complete. The crime of money laundering is targeted at the activities that generally follow the unlawful activity in time."

(wisenberg)

January 4, 2012 in Money Laundering, Prosecutions | Permalink | Comments (0) | TrackBack (0)